IRS-Hitman

Tax scams do not end with the tax season. The IRS phone scam continues to victimize taxpayers. Fraudsters make phone calls to taxpayers, pretending to be IRS agents, and inform them that they owe back taxes. They instruct the individual to…

Every month your taxes remain unpaid after the April 15 deadline, you pay a penalty of 0.5%. In most cases, the penalty doesn’t go beyond 0.5%, but it can reach a maximum of 25% per month. Along with the penalty, you are also charged…

Along with saving taxes, a retirement plan also secures your future. You can save more in taxes by choosing the right kind of retirement plans according to your financial situation. Before you select one, it’s important to know the…

Bombay High Court Rules for Vodafone, Says Issuance of Shares Was Not Income

Oct. 10 — The Bombay High Court has ruled in favor of British telecommunications company Vodafone in a transfer pricing dispute involving tax years 2009-10 and 2010-11, finding the issuance of shares in a capital financial transaction…

Oct. 1 — The Organization for Economic Cooperation and Development Oct. 1 announced that the work under its joint project with the Group of 20 countries to combat base erosion and profit shifting (BEPS) will include a discussion draft…

A dramatic overhaul of the Chilean tax system—including significant implications for foreign owners of companies in Chile—is one step closer to being finalized, after the Chilean Senate approved the legislation Aug. 19.The post…

Back in 2014 I mentioned (in passing) that two poker players had $100,000 seized while simply driving across Iowa on their way home to California. The Iowa Department of Public Safety (the state highway patrol) had a dedicated team on…

I have a client who filed a Tax Court petition in late September. She is disputing additional tax from an Automated Underreporting Unit (AUR) notice. She didn’t respond to the initial AUR notice, so the way to resolve this is to file a…

In a little less than a month it will be time to reveal this year’s winner of the prestigious “Tax Offender of the Year” award. Remember, To be considered for the Tax Offender of the Year award, the individual (or…

Discover Why Filing for Bankruptcy on the Wrong Day of the Week Could Cost You Thousands – And What the Right Day Is Instead!

Friday is undoubtedly one of the most popular days of the week. But did you know that Friday is the WORST day for filing bankruptcy? If you’re thinking about filing for bankruptcy, it’s important to plan carefully in order to…

What Will the Neighbors Think? How to File for Bankruptcy Without Anyone Knowing

Have you heard that filing for bankruptcy could provide relief from your financial struggles – but you’re worried about what your neighbors, coworkers, or family might think? That’s one worry that you can write off…

Arizona bankruptcy filings of new Chapter 7 liquidations, Chapter 11 reorganizations, and Chapter 13 repayment plans are down from a year ago in all three court locations – in Phoenix, Tucson, and Yuma. I decided to take a look…

By Jacqueline L. Messler. As the average age of Americans continues to rise, more cases of dementia are diagnosed, and the need for assistance for the elderly rises, estate planners are often faced with issues of capacity. …

By Michael B. Berzowski. On August 24,2014 while doing some yard work, I lost my footing , fell and managed to break both bones in my lower right leg along with some cartilage and tendon damage plus some bone chips in the heel area. As…

Tax Policy Blog

Covers federal, state and international tax issues, including AMT, capital gains and dividends taxes, corporate income taxes, income taxes, property taxes, and sales and use taxes. By the Tax Foundation.

In a recent op-ed in the New York Times [found here], Warren Buffett is once again insisting on a new super-minimum tax on the super-wealthy. He suggests that the rich pay an effective tax rate of 30 percent on incomes between $1 million…

On behalf of the state policy team at the Tax Foundation, I want to wish you a happy Thanksgiving holiday! We're very thankful of the continuing praise and support we've gotten from you as we've worked to bring about simple, sensible tax…

Mother Banned From Contact With Son, Must Block Cell Phone, After Guilty Plea In Tax Crime

Authorities allege that Jaquon Mucsarney devised a scheme to defraud the Internal Revenue Service (IRS) of millions in bogus tax refunds. To further the scheme, Jaquon sought help: one of Jaquon's partners in crime turned out to be his…

The advocates of tax cuts claim that cutting taxes puts more money in taxpayers’ pockets. Not only do tax cuts not benefit the economy if they are not appropriately distributed, as we saw fifteen years ago and are going to see again,…

One of the emails that bring me daily tax updates included, among its more than a dozen headlines, this one: Trump Has a Family Foundation. Why Don’t You? Though I didn’t think the question was aimed at me personally, I did stop…

In a series of posts, I have criticized the New Jersey tax policy of dishing out tax breaks to companies that it entices to move to New Jersey, or to move to Camden from within New Jersey. Though the claim that handing out tax reductions…

On October 26, 2016, the SEC amended Rule 504 of Regulation D under the Securities Act of 1933 (the “Securities Act”) to increase the maximum amount of securities that may be sold thereunder in any 12-month period from $1 million…

What Are &lsquo;Commercially Reasonable Efforts&rsquo; in M&amp;A Transactions?

Two recent rulings out of the Delaware Court of Chancery have highlighted the importance of clearly defining the terms of pre-closing obligations. In an M&A transaction, it takes significant time to get from a signed letter of…

What You Need to Know About Mergers and Acquisitions Involving Government Contractors and Their Supplier

Volume X – Accounting for the Cost of Business Combinations Under Government Contracts Mergers and acquisitions create additional costs and complex accounting issues for government contractors. There are fees for accounting,…

Trump's Proposal to Repeal Estate Tax Will Not Effect More Than 99% of Americans Who Are Extempted From Estate Tax. Estate Tax Elimination Does Not Eliminate Need for Trust and Estate Planning.

If president-elect Donald Trump follows through on his campaign promises, the estate tax will be eliminated. Currently, the rules are straightforward: A married couple is exempt for the first $10.9 million in their estate, and they…

Estate Planning Meets Retirement Planning - NYT Article on How to Give an I.R.A. to Beneficiaries Without Giving Up Control

Kate Thornton/New York TimesAn interesting New York Times article "How to Give an I.R.A. to Children Without Giving Up Control" (11/18/16). Some may have never heard of a Trusteed I.R.A. which allows the funds to be distributed to…

Tax, Trust and Estate News

What New Jersey Small Business Owners Need to Know About Income Tax Return

When tax season comes around, there are several factors to keep in mind as a small business owner in New Jersey; specifically with income tax returns. Tracking taxable income and ensuring compliance with requisite tax forms can be an…

The following is an excerpt from a notice that was issued by the Division of Taxation in the Department of Treasury of the State of New Jersey. NOTICE TO QUALIFIED BUSINESSES LOCATED IN URBAN ENTERPRISE ZONES EXPIRATION OF URBAN ENTERPRISE…

What is so compelling about the Trump tax strategy? Critics and supporters have been outspoken about Republican president-elect Donald Trump's tax returns recently. According to a Politico report, the focus of the debate has been…

Planning Notes

Well, it happened.
Something very few people saw coming: Donald Trump was elected President of the United States.
For most people, there are a whole host of potentially more pressing questions about what Trump's presidency will mean for the…

Last Thursday, Hillary Clinton declared her proposal for the federal estate tax:
Currently, only estates worth $5.5 million or more pay taxes on inheritance. Clinton would lower that threshold to $3.5 million per person and $7 million per…

Did you know that if you die without a will, each state in the U.S. has already written one for you? These default “wills” are actually called “intestacy statutes” and they generally provide the following as to the…

The 1031 Exchange Blog

Leasehold Interest of Less Than 30 Years Not Like-Kind to Fee Simple Interest

Taxpayer Owns Leasehold Interest and Motel
The taxpayer in this Tax Court Case (VIP's Industries, Inc., June 24, 2013) owned a leasehold interest that had a remaining term of twenty-ond (21) years and four (4) months. The taxpayer had…

For real estate investors located in high tax rate states, such as California, the 1031 Exchange just moved to the top of their to-do list.
There were some very significant changes made to Federal and state tax codes, and a…

For real estate investors located in high tax rate states, such as California, the 1031 Exchange just moved to the top of their to-do list.
There were some very significant changes made to Federal and state tax codes, and a…

Start Making Sense

New research by Raj Chetty et al on the &quot;fading American dream&quot;

Raj Chetty et al have just posted important new research (also summarized here) concerning what they call the "fading American dream." Here is what I wrote about this research, but was asked to keep offline until its public…

Who's stupid, and for that matter what's stupid (it's surprisingly hard to say)

David Frum on Twitter: “Basically the Trump administration is a giant prank on Trump voters.” For example, because Trump’s appointment for Secretary of Labor is “the most outspoken advocate of Bush-style immigration…

JOTWELL - The Journal of Things We Like (Lots)

Edited by University of Miami School of Law Professor Michael Froomkin, The Journal of Things We Like (Lots)–JOTWELL–invites law professors to join us in filling a telling gap in legal scholarship by creating a space where legal academics will go to identify, celebrate, and discuss the best new legal scholarship.

Im-be-ciles: The Supreme Court, American Eugenics and the Sterilisation of Carrie Buck

Adam Cohen, Imbeciles (2016).Kris MiccioAdam Cohen has written an exhaustive account of the nexus between eugenics, racism and immigration law in the United States. Against the backdrop of the Carrie Buck case, a young, poor Catholic…

Anat R. Admati, It Takes a Village to Maintain a Dangerous Financial System in Just Financial Markets? Finance in a Just Society (Lisa Herzog ed., forthcoming 2017), available at SSRN.Caroline BradleyIt Takes a Village to Maintain a…

On Thursday, December 8 from noon to 12:30 pm PT (3 pm to 3:30 pm ET), join our free livestream on Grantspace (The Foundation Center) for a list of 10 tips and ideas to get yourself ready for 2017. Michele and ……

I’m moderating a panel on crowdfunding this morning at the 20th Annual Western Conference on Tax-Exempt Organizations. In honor of the session, and thinking back to my recent trip to New York where reasonably priced Hamilton tickets…

The past week was marked by Giving Tuesday and (for me) the Western Conference on Tax-Exempt Organizations. Have a listen to the Goo Goo Dolls’ version of Give a Little Bit while perusing our curated nonprofit tweets of the week:…

One of the advantages of trusts is privacy. Unlike the probate of a will, there is no legal requirement that the trustee file the trust with the local court. However, privacy is also one of the disadvantages of trusts. Unless the Trustee…

A key goal of what we refer to as “estate planning” is to preserve a legacy for your family. How can you get as much of your estate as possible into the hands of your beneficiaries? That means minimizing, if not…

By Nathan Vinson, Attorney English, Lucas, Priest and Owsley Owning a business is the American dream for many. It’s building something from your own hands that you’ve shaped and created. It’s long hours, and a labor of love…

By Nathan Vinson, Attorney English, Lucas, Priest and Owsley, LLP Everyone who owns a home gets a bill from their local municipality for property taxes. It’s not a surprise that it’s coming. Most of us sigh, write the check (or…

By Nathan Vinson The IRS recently enacted a new IRA rollover rule that’s actually good for consumers, and something that can really help you – but it is a lot more complicated than it appears on the surface. Essentially, the IRS…

The Resource Blog

California Tax Guide for Marijuana Businesses and Proposition 64: The Adult Use of Marijuana Act

On Tuesday, California voters passed historic legislation by voting to allow the recreational use of marijuana in California. Regardless of your opinion about marijuana use, the legislation will have a huge impact on the state of California…

Opting Out of the Offshore Voluntary Disclosure Program (ODVP) – Part Two

Here are the steps that IRS examiners take before a taxpayer makes the irrevocable decision to opt out: 1. Send Status Letter to the taxpayer setting forth the status of the voluntary disclosure certification, documents required to finalize…

Opting Out of the Offshore Voluntary Disclosure Program (ODVP) – Part Two

Here are the steps that IRS examiners take before a taxpayer makes the irrevocable decision to opt out: 1. Send Status Letter to the taxpayer setting forth the status of the voluntary disclosure certification, documents required to finalize…

ataxingmatter

Democratic states that invest have better economies, better quality of life, better infrastructure than red state

economnists view http://economistsview.typepad.com/economistsview/2016/07/the-path-to-prosperity-is-blue.html The Path to Prosperity Is Blue Jacob Hacker and Paul Pierson: The Path to Prosperity Is Blue: How can America’s leaders foster…

Trump has a base of supporters that seem to think he really cares about them and will work on their behalf. Those beliefs are not based in credible evidence. Let's examine. Trump claims that he will create jobs and save...

Senator Wyden (D-Oregon) has been interested in reforming retirement account tax treatment for some time. Back in the fall of 2014, he and Senator Orrin Hatch held hearings on the need for retirement account reform, focused on the idea…

via www.fox26houston.com How you can benefit from elder law services? ElderCounsel CEO, Valerie Peterson, J.D., was live on Fox 26 Houston on Thursday, September 15. She talked about common elder law planning misconceptions, long term care in…

When you inherit property, such as a house or stocks, the property is usually worth more than it was when the original owner purchased it. If you were to sell the property, there could be huge capital gains taxes. Fortunately, when you…

Are payable on death accounts a simple way to pass assets to heirs or are they a mistake? It sure sounds simple. With a payable on death account or paid on death account, you name a beneficiary who gets the account when you die—no probate,…

The IRS appeals office recently launched its “Fast-Track Settlement” procedure for tax audits. This process allows an appeals officer to look at a tax case before the auditor is done, and the auditor serves as a sort of mediator…

I attended the USC Tax Institute, a gathering of tax geeks in downtown Los Angeles, last month. Among the more accessible topics was a presentation on tax audits given by Ted Meyer, a former territory manager for IRS auditors. In 2014, he…

Churches and ministers receive many tax breaks: churches do not need to withhold social security taxes from their ministers’ pay; churches receive income tax-free; and ministers do not pay tax on the cash value of church-provided…

Givner & Kaye Blog

On June 19, two Swiss banks agreed to pay penalties totaling nearly $6 million in order to avoid prosecution under the Department of Justice’s program which requires Swiss firms to disclose how they helped their American clients avoid…

On June 19, Enrique Free Pacheco filed his third complaint for a refund of taxes withheld from the winnings he earned by playing the slots in Las Vegas. This complaint is Pacheco’s third, following lawsuits filed in the US Court of…

Starting July 1 of this year, Japan will impose an “Exit Tax” on both Japanese nationals and non-nationals who expatriate. The tax is based on those instituted by both the US and Canada. The US system, which is itself modelled on…

New Birth Certificate Guidelines in North Carolina for Same-Sex Couples’ Children

Same-sex couples who have a child in North Carolina could previously only list one parent on the child’s birth certificate. This made administration of additional documentation for the child (Social Security card, school registrations,…

Expenses in senior years continue to be a concern for many Americans. As multiple studies show, most individuals do not maintain adequate retirement contributions. As the costs of long-term care (LTC) insurance policies and LTC costs rise,…

An individual’s last will and testament might clearly reflect one’s wishes, but it does not prevent an estate dispute. Successfully contesting a will in North Carolina (and similarly in other states) requires evidence of certain…

409A Dismay

In a rare piece of good news relating to Section 409A of the Internal Revenue Code, on October 4, 2013, California reduced its additional state tax on income failing to comply with Section 409A from 20 percent to 5 percent. This reduction is…

From Benefits Notes Blog:"I also found the case interesting because of the time periods involved and the role of the taxpayers in the stock issuance. The case involved actions taken during the 409A transition period, the period of time…

I’m reviving my blog to make a couple of comments about the election and because I’ll be traveling again soon, always a good time for posting. Some of these are comments I’ve already posted on Facebook et al. Here we…

Stories have been floating around the international media about various outrages attributed to Haredim or "ultra-orthodox" Jews in Jerusalem and other cities. These include forced segregation of men and women on buses, efforts to keep…

My class is over and I'm using the last three days to see parts of Israel that I might otherwise miss. Last night I headed to Jerusalem for a workshop at the Van Leer Institute on Arab and Jewish demography, not normally one of my core…

The Offshore Compliance Advisory Committee (OCAC) has published its report on the CRA’s Voluntary Disclosure Program, the first of several anticipated OCAC reports in furtherance of the OCAC’s mandate to provide advice to the…

Auditor General Provides Recommendations for Improving CRA Review of Objection

Under the federal Income Tax Act, the Canada Revenue Agency must consider a taxpayer’s objection and must vacate, confirm or vary the underlying tax assessment. This review must be completed “with all due dispatch”.…

The holiday season is underway and while this is a time for family events and holiday parties, this is also the time that many identity theft scams occur. The Internal Revenue Service (IRS) started the process of alerting taxpayers about…

Over the past couple of years, the Securities and Exchange Commission (“SEC”) has evolved how companies can raise capital, while simultaneously maintaining adequate protection for investors. For example, starting in May of 2016,…

The Saga Continues: The DOL Appeals the Court’s Ruling Halting The New Overtime Rule

In the latest chapter in the ongoing saga of the newly revised (and currently halted) overtime rules, on December 1, the Department of Labor appealed the lower court’s ruling to the United States Court of Appeals for the Fifth Circuit.…

3 Strikes Against the IRS in Attempting to Impose Fiduciary and Beneficiary Liability for Estate Taxe

During her lifetime, Anna Smith established the Anna Smith Family Trust, a revocable trust administered for her benefit. Initially, Anna was initially a co-trustee with two of her children, but eventually became sole trustee. A significant…

A recent case illustrates 3 important burden of proof issues. The general facts of the case involved a merger of a company owned by parents with a company owned by children. The gift tax issue involved the relative value of the two companies…

The IRS only has three years after a Form 709 is filed to assess gift taxes on a gift, so long as the gift is adequately disclosed on the return. If a gift is not disclosed, the statute of limitations does not begin to run on that gift. The…

In a case study of the balance of governmental powers, the United States Court of Appeals for the Ninth Circuit ruled this month that local ordinances passed by three Hawaii Counties to ban the cultivation of GM (genetically modified) plants…

The November 8, 2016, election will be long-remembered. Although the result was surprising to many, it was largely driven by rural Americans seeking change to the status quo. But, what will a new Administration actually mean for rural…

Taxpayers who are assessed trust fund recovery penalties need to take note of the U.S. Tax Court’s recent decision in Anderson v. Commissioner, T.C. Memo. 2016-219. The decision highlights a potential foot fault they may make when…

Innocent spouse relief can allow a taxpayer to avoid joint liability for taxes that arose during the marriage. If granted, the tax is generally computed as if each spouse filed their tax returns separately. If the couple is divorced at the…

An IRS agent is generally required to get written approval from their manager for a tax penalty can be assessed. This is requirement is set out in the Code. This begs the question as to what happens if the agent does not get written approval…

Do You Want To Know About Your IRS Account Balance? IRS Launches New Online Tool to Assist Taxpayers with Basic Tax Account Information

The Internal Revenue Service announced on December 1, 2016 (IR-2016-155) the launch of an online application that will assist taxpayers with straightforward balance inquiries in a safe, easy and convenient way. This new and secure tool,…

In September 2016, the governor of New Jersey ended a tax reciprocal tax withholding agreement with Pennsylvania effective Jan. 1, 2017. This nearly 40-year-old tax withholding agreement allowed commuters to pay income tax to the state where…

City of Philadelphia Department of Revenue Announces Wage Tax Reduction for July 1, 2016

Philadelphia Landmark: The Famous and Quirky 45 Foot Steel Clothes Pin Created by Sculptor Claes Oldenburg Across from City Hall The City of Philadelphia has reduced the City Wage Tax rate effective July 1, 2016. The new Wage Tax…

Unlawful detainer law is filled with pitfalls for the unwary. For example, if the landlord realizes after the unlawful detainer complaint has been filed that its three day notice is invalid, can it simply serve a new three day notice, then…

Unlawful detainer law is filled with pitfalls for the unwary. For example, if the landlord realizes after the unlawful detainer complaint has been filed that its three day notice is invalid, can it simply serve a new three day notice, then…

USCIS ANNOUNCES AN INCREASE IN FILING FEES Effective December 23, 2016, there will be an increase in fees for applications and petitions filed with U.S. Citizenship and Immigration Services (USCIS). Some examples of the fee increase are: An…

Florida Estate Planning and Probate Law Blog

With December 31, 2016, right around the corner, it is important to look at your year end personal tax and estate planning situation. With a Trump administration and a Republican-controlled Congress, much attention has been paid to the tax…

Under the Internal Revenue Service (IRS) rules, the service has a three (3) year statute of limitations after the filing of IRS Form 709 to assess gift taxes on a gift, so long as the gift is adequately disclosed on the return. If a gift is…

Most individuals expect significant changes to the US Tax Code once President (elect) Trump takes office. High on his agenda are the following: INDIVIDUALS: Cut the number of individual income tax brackets (from 6 to 3) and bring income tax…

Expatriates and the federal income tax Going abroad to live and work is a very exciting thing to do. It also has tax consequences because the United States will tax your income, no matter where you live and no matter...

Does the Tax Code Reward or Penalize Marriage? The story is as old as time. First comes love then comes marriage. And quick as a rabbit after that: the joint tax return. Ah, sweet bliss, married only a few weeks…

For Some That Big, Tax-free Gain May Not Be There After All When I was a boy my dad bought the family home with his Korean War veteran’s benefit and the savings he’d accumulated working lots of long hours. I…

Today is the day! The third annual Santa Lawyer contest is officially underway. Santa Lawyer is looking forward to seeing which organizations are nominated this year and as promised, we will be posting holiday themed photos for your viewing…

This is the final post in my three part blog series on churches as tax exempt organizations. This third section will discuss charitable contributions, special rules limiting the IRS’ authority to audit a church, and 990-series return…

Back by popular demand! Instead of sending out holiday cards from my firm, I prefer to give a contribution in honor of my clients to a local organization. Instead of choosing the organization myself – last year I asked you…

Congratulations to SYK attorney Victoria Blachly, who has been appointed by Governor Kate Brown to the Oregon Commission on Uniform State Laws. The Oregon Commission drafts uniform state laws in all states, for various fields of law. The…

On Tuesday, November 22, a Federal District Court Judge in Texas granted a nationwide preliminary injunction against an Obama administration regulation, which sought to expand the eligibility of millions of workers for overtime pay.The…

Last week at the 2016 Annual Meeting of the Public Investors Arbitration Bar Association in San Diego, attorney Bob Banks was honored with PIABA’s Distinguished Service Award. The award is given “in recognition of outstanding,…

ISU CALT Articles

Covers key issues in agricultural law and taxation, including federal and state legal opinions and critical legislative developments. From Iowa State University's Center for Agricultural Law & Taxation.

Update: On November 22, 2016, the United States District Court for the Eastern District of Texas issued a preliminary injunction, blocking implementation of the new Rule nationwide, pending futher review. The court ruled that the state…

Marketplace open enrollment for 2017 begins November 1, 2016. Consequently, beginning tomorrow, eligible Americans can go to healthcare.gov to enroll in a health care plan under the Affordable Care Act. Likewise, many open enrollment…

Caring for a Loved One - Guardianship, Powers of Attorney and Medical Directive

Holiday gatherings are often a time for us to gather with relatives and friends. The bustle of holiday activity can highlight the impact that aging has had on our loved ones in the passing year. Observing decline in the people we care about…

It is no secret that most Republicans and Donald Trump wish to get rid of the federal estate tax (or as it is commonly referred to "The Death Tax"). With Republicans in charge of the House, Senate and Presidency, I think we are very…

It's official. According to NJ.com, Governor Christopher Christie has signed a a bill to repeal the New Jersey Estate Tax. The new law is part of a larger package deal that increases the gas tax, reduces the sales…